A licensed brand is a special kind of family brand that sellers pay a fee to use.The use of the same family brand for many products makes sense if all are similar in type and quality.The goodwill attached to one or two products may help the others.Money spent to promote the brand name benefits more than one product,which cuts promotion costs for each product.

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Use of Family Brands

Question 220

Multiple Choice

Use of family brands

A) may involve several firms if one licenses its brand.
B) is common among both producers and intermediaries.
C) can provide customers with cues about the quality of new products.
D) can be efficient,since the brand name will carry over in the firm's advertising.
E) All these answers are correct.

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